Canadian companies have added tens of billions of dollars to their stockpiles of cash at a time when tax cuts are supposed to be encouraging them to plow more money into their businesses.Well, suck me dry and call me "Dusty!" You mean to tell me that supply-side economics - the notion that if you give tax breaks to rich people and corporations they will use it to create more wealth for all - is bullshit? That what really happens when you give rich people and corporations a tax break is that they pocket the money? No! That's, that's...unpossible!
Jim Flaherty, the Harper government’s Finance Minister, acknowledged in a telephone interview that corporate tax cuts are a tough sell when companies are still hoarding cash. But over the long term, he said, his “comfort zone” comes from the fact that business leaders and economists have widely endorsed tax cuts as a job creation tool.
“Most importantly,” he said, “it’s a confidence builder in Canada, and it’s a way of branding Canada.”So cutting taxes on the business sector simply results in the business sector having more money and the government having less to maintain roads, pay firefighters and fund education and health care. Well, I never. Will wonders never cease? Next thing you know some smart cookie is going to be telling us that boosting military spending and cutting taxes on corporations and the wealthy somehow leads to higher deficits or some other crazy notion.
Crossposted from The Woodshed